What is GameFi, And Why Do We Want It
In the gaming and blockchain sectors, GameFi has lately gained a lot of traction as a concept: instead of paying to play online, gamers are finding new ways to receive rewards for their time and work in blockchain games. This new paradigm is called “play-to-earn” and from the looks of things, there’s no stopping it.
In this piece, I’m going to give GameFi and P2E a look-see to find out if TRASTRA’s made the right bet in creating a Rapid Listing Program (RPL) as a road map for listing the most potent gaming tokens in 2022. We’ll find out what exactly is GameFi, how does P2E work, and whether either (or both) have a real future in the Metaverse. Spoiler alert: oh, yes, my friends, they certainly do, but let’s not get too far ahead of ourselves.
First things first: What is GameFi?
It was just a matter of time before gaming and DeFi were intertwined by blockchain technology: thanks to multiple blockchains with their specific protocols (wink-wink Ethereum smart contracts), and some major developments in DRM (yup, NFTs), individual players can now be certified owners of virtual components in blockchain-based video games, hence the ability to hock their tokens, stake them, trade them, and, most importantly exchange them for fiat money.
Hence, “play-to-earn” — a model introduced by GameFi where players can utilise their skill to earn not just “casino chips” but actual cash, and rewards here can be quite substantial. It’s critical to stress that to succeed in GameFi, players need more than just a little bit of luck and a cryptocurrency wallet. Depending on the game, the actions you may need to take to get rewarded may vary, but what will get you far is an ability to interact with others, do financial planning and math. Your natural adventurism and proclivity to spend countless hours staring at your screen are also tremendous prerequisites for success in GameFi.
Ironically, many young people, especially in developing countries, are rejoicing at the opportunity to drop out of the formal economy and game for monetary rewards. The irony is that had they stayed on track to become part of the “society of producers,” still, likely they’d be sitting down all day glued to their displays and doing it for pay comparable to what they’re already making online… Never mind the rant, moving on.
How does GameFi work?
A reward is generated in a variety of ways depending on the game. Most GameFi projects are in one way or another revolve around Non-Fungible Tokens (NFTs). In case you’ve been stuck on the toilet without Internet for the last year or so, NFTs are distinctly unique digital assets designed to signify irrefutable ownership of something (anything) on the blockchain.
User-created avatars and other NFT-based items are much like those seen in conventional games. The difference is ownership rights; gamers may invest in their digital assets knowing full well that as long as that thing lives on the blockchain, ownership will never be disputed.
Where does DeFi fit in?
Glad you asked. Much (if not all) trading among gamers is done via Ethereum-based smart contracts. However, Ethereum may not be as fast as you want it to be. Due to scalability issues and the limited block space, those requiring the fastest settlement times must incentivize miners to include their transactions. If there is insufficient hard drive space, transactions become more expensive.
This is a problem that blockchain games developers are already facing and will have to solve in the nearest future; right now, it’s next to impossible to scale a cryptocurrency-based game to have as many players as a major mainstream title without charging substantial transaction fees.
A lot of developers are moving away from base-layer Ethereum networks since they’re slower and less efficient than other chains. A few examples are Polygon Network, Solana, Wax & Polkadot — all of which boast blazing fast speeds and high capacity. Binance has also rolled out its own network with big ambitions for 2022.
Right, I want to play! What do I need to get into GameFi and start earning?
Easy. First, you’ll need to set up a cryptocurrency wallet because unlike in conventional games, where you identify yourself through a username and password, in blockchain games your wallet address is your everything. Luckily, that’s something TRASTRA can help you with.
You’ll need a different wallet depending on the game you’re playing. To play a well-known game like Axie Infinity, you’ll need an Ethereum wallet, and again, TRASTRA is happy to oblige.
Your wallet must be funded before you can proceed. Depending on the game, you may be required to use one or more cryptocurrencies. Once your wallet is set up and funded, you’ll need to exchange ETH for the game’s native tokens so you can begin getting rich by purchasing digital assets. For instance, in Axie Infinity, players must use native tokens AXS and SLP to acquire at least three Axies in their wallets before they can begin playing…
If you don’t mind, I’m not going to get into the specifics of the game. I’ll leave the thrill of finding out the value behind raising Pokemon-like creatures on your PCs in the hopes of breeding a rare type that can earn high amounts of crypto to you. What’s important to realise here is that Axie has got over two million people playing daily and the amount of real dollars changing hands on the platform is staggering. So for a shrewd, tech-savvy gamer P2E presents a real opportunity.
What are some of the most prominent GameFi projects?
Axie Infinity
Developed by the Vietnamese company Sky Mavis, Axie Infinity is an online video game that employs the Ethereum-based currencies AXS and SLP. The “Axies” (axolotl-looking characters) in this game are digitized as NFT and may be collected, bred, fought, and traded. You know, just like in real life.
Decentraland
The virtual world of Decentraland is managed entirely by its residents. Plots of “land” in this virtual world are represented by NFTs, and prices for particular lots can sometimes reach dizzying heights. Decentraland had 1,500 daily active users early in 2021. At the time of writing (Happy New Year!), that number is way past 15000.
CryptoBlades
CryptoBlades players basically fight each other for SKILL tokens. Again, reference to real life with nation-states battling each other for money, power, and influence only to lose all that in the next war is in order. Though, with CryptoBlade fights are much less harmful and much more fun. And in the end, you can trade, stake, or sell your SKILL for profit.
Sandbox
Play, develop and own your own virtual worlds in the Sandbox virtual Metaverse. The Sandbox’s native token, SAND, serves as the foundation for all interactions and transactions in the game’s ecosystem. To keep it exciting, I’ll mention that Snadbox’s YTD Returns are 16,853% and the ecosystem’s market cap currently clocks at $5.6 billion. Not bad, huh…
Some of the other top earners this year include Gala (up over 35,100% in 2021), Enjin gaming platform (up 1,971% with the market cap rising to $2.5 billion). Ethereum has done very well for itself raising to half of the trillion market cap this year. I can go on, but the real question is
What’s next for GameFi in 2022?
I fully expect GameFi to keep on growing. People love games, which is in our nature, but with additional financial incentives found in GameFi, it’s likely many more people will find bliss in chasing Axies all over their screens.
The GameFi rewards are very real
And let’s not forget: the incentives, the rewards, the gains — it’s all very real. In-game assets such as NFTs and others are as real when it comes to tradability as it gets. Gamers can earn real money by using GameFi’s AI bot-powered gaming systems, trade real value on-chain via smart contracts, and experience some tangible spiritual and social benefits (I’m not afraid to use those terms) through integration with newer technologies like augmented reality and virtual reality.
New hardware
VR goggles and VR-enabled gaming consoles today are an ever-growing industry (just look at the long-discarded HTC go!) and GameFi’s immersive gaming is an entirely new social concept that is not only a lucrative vocation but an exciting development from the academic standpoint. Experience as well as the new projects they have been promoting recently.
Social factor
Hundreds of websites and social media communities dedicated specifically to GameFi have been created in just recent months. Gamers flock to relevant communities solidifying online friendships along with gaming platforms market caps.
Big Tech is going on the offensive
The “Big Four” tech will continue to show interest in the metaverse and gaming sector. UniSoft, a traditional gaming company, has already planned to integrate blockchain technology with its traditional model.
Mo’ money, Mo’ shopping, mo’ stuff!
There’s a lot of work going on on Fantom, Algorand, Wax, and other innovative platforms to provide scalability solutions, which would result in turning cryptocurrency (ETH, most likely) into a scalable and legitimate medium for universal payment — interoperable and lightning-fast. With that come shopping features — tons of them. It’s safe to say that whoever stumbles onto the integration solution for a regular Joe with his (or Jane with her) Visa card to jump in the Metaverse and jump out with bags full of real stuff will be a massive winner in 2022. We’ll just have to see.
